Monthly Compound Interest Formula

Below is the monthly compound interest formula for monthly compound interest acquired over a period of time for a given principal amount deposited or taken as loan. This monthly CI formula is different from that of a simple interest (SI) formula as both differ in their operation. CI is different from the SI in the sense that simple interest calculates the interest only for the principal, whereas compound interest calculates the interest for principal and accumulated interest.


I = P (1 + (r / 12))12 x T - P


I = Monthly Compound Interest
P = Principal
r = Rate
T = Time

Related Calculator:

Make use of this monthly compound interest formula to calculate the monthly interest you get as compound interest for your investments. You can click on the "Monthly Compound Interest Calculator" link to navigate to the calculator page and check your outputs.

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